Chase Bank has issued a message to customers informing them more of their money will be protected from December 1. The bank, which is online only in the UK and owned by financial firm JP Morgan, has grown in popularity here thanks to competitive offers on savings rates and a 1% cashback on debit card spending offer and is regularly recommended by Martin Lewis.
This week the bank issued a message to customers to tell them it’s increasing the amount of money it will protect from £85,000 to a bumper £120,000, effective from December 1.
This is because the Financial Conduct Services Scheme is changing its rules on money protection and will now offer to guarantee cash deposits up to £120,000.
The Deposit Guarantee Scheme means that should something happen to your bank – such as the bank going bust – the FSCS will protect your money from being lost.
Currently, experts urge people not to leave more than £85,000 in one bank account, or even in separate bank accounts if they are owned by the same parent company, as any money above that amount won’t be protected. But under the new rules, you will be able to keep £120,000 per account safe.
Chase wrote in a message to customers: “The Financial Services Compensation Scheme (FSCS) is increasing the protection limit on your eligible deposits from £85,000 to £120,000 from 1 December 2025.
“This means their Deposit Guarantee Scheme will repay you up to £120,000 of your eligible deposits, in the unlikely event that something happens to Chase.
“Don’t worry, there’s nothing you need to do – it’s automatically updated for you.”
Some account providers have more than one brand sharing a banking licence under the same group, so it is important for people to check whether their provider shares a banking licence with other brands where they hold an account.
If customers hold money in several accounts with multiple banks that are part of the same banking group and share a banking licence, the compensation limit applies to the total amount held across these accounts.
Sam Woods, deputy governor for prudential regulation at the Bank of England and chief executive of the PRA, said: “This change will help maintain the public’s confidence in the safety of their money.
“It means that depositors will be protected up to £120,000 should their bank, building society or credit union fail. Public confidence supports the strength of our financial system.”
Martyn Beauchamp, chief executive of the FSCS, said: “We welcome today’s announcement from the Prudential Regulation Authority confirming that the FSCS deposit protection limit will increase.
“This rise ensures that consumers can feel confident their money is safe, from the very first penny up to £120,000.
“At FSCS, we know that trust in financial services is vital for stability and growth. This enhanced protection will reassure consumers and support confidence in the UK’s financial system.”
Rocio Concha, Which? director of policy and advocacy, said: “Increasing the deposit protection limit is a sensible decision to support consumer confidence in the financial services industry.
“It is also a timely reminder that, at a time when the Government and regulators are trying to boost economic growth, strong consumer protections needn’t hamper those aims.”
